Mileage Claims for Self-Employed | 45p per Mile Guide 2026

The Mileage Rates

The standard mileage rates for self-employed individuals using their own vehicle are set by HMRC. These rates are known as ‘simplified expenses’.

Cars and Vans

Motorcycles

Bicycles

How to Calculate Your Mileage Claim

Calculating your claim is straightforward. You simply multiply your business miles by the applicable rate.

Example:

You are a freelance consultant. In the tax year, you drive 12,000 miles for business.

• First 10,000 miles: 10,000 x 45p = £4,500
• Remaining 2,000 miles: 2,000 x 25p = £500
• Total Mileage Claim: £4,500 + £500 = £5,000

This £5,000 is deducted from your turnover when calculating your taxable profit.

Alternative: Actual Car Costs

Instead of claiming mileage, you can claim the actual costs of running your vehicle. This includes:

• Fuel: The cost of fuel for all business journeys.
• Insurance: The proportion of your car insurance that relates to business use. See our guide: Insurance Costs.
• Repairs and Servicing: The cost of repairing and maintaining your vehicle.
• Road Tax: The proportion related to business use.
• AA/RAC Cover: The cost of breakdown cover.
• Depreciation: The loss in value of your vehicle over time.

When to Use Actual Car Costs

• Your actual costs are higher: If your vehicle is expensive to run or you have high depreciation, the actual cost method may give a larger claim.
• You have a van: The mileage rate for vans (45p/25p) is the same as for cars, but the actual cost method for vans may also be beneficial.
• You can keep records: This method requires you to keep all receipts and detailed records.

Keeping a Mileage Log

HMRC requires you to keep a detailed mileage log to support your claim. Your log should include:

• Date: The date of the journey.
• Destination: Where you travelled to and from.
• Purpose: The business reason for the journey.
• Miles: The number of miles travelled for business.
• Total Mileage: An annual summary of your business and private mileage.

You can keep a log in a notebook, a spreadsheet, or use a dedicated mileage tracking app.

Example Log Entry:

What Mileage Can You Claim?

You can claim for:

• Business Travel: Journeys between your home (if it’s your main place of work) and temporary workplaces. This is the most common type of claim.
• Travel to a Permanent Workplace: If you work from a fixed office, you cannot claim mileage for the journey from home to that office. This is considered ‘ordinary commuting’ and is not deductible.
• Client Meetings: Travel to meet a client.
• Supplier Visits: Travel to visit a supplier.
• Conferences: Travel to a conference or training event relevant to your business.

The Cash Basis and Mileage

The mileage claim works the same way whether you use the Cash Basis vs Traditional Accounting. You can claim the actual cost of fuel or the simplified mileage rates.

How We Can Help

Claiming mileage correctly can save you significant amounts of tax. Our ACCA-qualified accountants can:

• Advise you on whether the mileage rate or actual costs are better for you.
• Help you set up a robust mileage log system.
• Review your mileage claims to ensure they are accurate and compliant.

This guide is intended for informational purposes and is based on UK tax regulations as of June 2026. Tax laws and government systems are subject to change. Always consult with a qualified professional regarding your specific financial situation. Right Tax Returns is an ACCA-registered firm.